Londoners hit with 80% of 'mansion tax' under Lib-Dems

Homeowners in Notting Hill would pay an average "mansion tax" bill of nearly £60,000 a year under Liberal Democrat proposals, it emerged today.

All homes worth more than £2million would be hit with an annual one per cent levy, the party said. Those in the wealthy W11 postcode favoured by bankers and stars including Stella McCartney and Damon Albarn would pay 10 per cent of the national tax bill or £103million a year, according to property website Zoopla.co.uk.

Lib-Dem leaders doubled the threshold from £1million on Monday after a backlash from its MPs fighting South East seats where house prices are higher. But more than 24,000 homes in the capital would still bear the brunt of the tax. Of those, 1,814 are in Notting Hill.

At current home values, London would pay 80 per cent of the UK's mansion tax, bringing in more than £800million a year. Zoopla estimates the proposals would raise £1.05billion across the UK. Other areas that would pay more than five per cent of the national tax bill are Kensington, Chelsea, Belgravia and Pimlico. Hampstead residents would pay 4.7 per cent.